Drew Baglino, a former senior executive at Tesla, has reportedly established a new startup focused on heat pump technology as he continues expanding his work in sustainable energy innovation.

The company, known as Sadi Thermal Machines, was quietly formed in 2025 and is based in Scotts Valley, California, according to corporate filings reviewed by industry observers.

The startup shares headquarters with Heron Power, another energy technology company founded by Baglino after his departure from Tesla in 2024.

Sources familiar with the company say Sadi Thermal Machines has already recruited several former Tesla employees, although little has been publicly disclosed about its operations or products.

The company’s name appears to honor Nicolas Léonard Sadi Carnot, the French physicist widely regarded as one of the pioneers of thermodynamics.

Baglino’s interest in heat pump systems dates back to his nearly two decades at Tesla, where he played a key role in developing the company’s electric vehicle energy systems, including batteries, electric motors, and thermal management technologies.

During his time at Tesla, Baglino contributed to advanced heat pump designs used in vehicles like the Tesla Model Y.

The system, known for its “octovalve” technology, allowed vehicles to efficiently manage cabin temperature, battery performance, and drivetrain cooling in extreme weather conditions.

Industry experts considered Tesla’s system among the most advanced in the electric vehicle market at the time.

Tesla executives, including Elon Musk and Baglino, had previously discussed the possibility of adapting the company’s heat pump technology for residential and commercial use.

During a 2022 earnings call, Baglino explained that creating heat pump systems for homes would actually be less challenging than designing them for electric vehicles because of fewer space and energy limitations.

Although Tesla never officially launched a residential heating or water system, Baglino repeatedly expressed interest in the field.

With the formation of Sadi Thermal Machines, observers believe he may now be pursuing that vision independently as global demand for energy efficient heating and cooling systems continues to grow.

Source: TechCrunch